| Manugraph India Limited | ||||
| Issuer not cooperating, based on best-available information; Rating downgraded to 'CRISIL D Issuer Not Cooperating' | ||||
| Rating Action | ||||
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| Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities | ||||
| *Issuer did not cooperate; based on best-available information | ||||
| Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this rating rationale did not provide the requisite information needed to conduct the rating exercise or did not provide the No Default Statements (NDS) for the last three months and is therefore classified as 'non cooperative'. |
Non cooperation by Issuer CRISIL Ratings has been consistently following up with Manugraph India Limited (Manugraph) for obtaining information through letter and email dated May 28, 2024, July 23, 2024; July 29, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative.
‘The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.’ |
Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Manugraph, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Manugraph is consistent with ‘Assessing Information Adequacy Risk’.
CRISIL Ratings has downgraded its rating on the long-term bank facilities of Manugraph to 'CRISIL D Issuer Not Cooperating' from ‘CRISIL B-/Stable Issuer Not Cooperating’. The rating action is based on delay in servicing debt obligations by Manugraph India Limited which came to CRISIL ratings’ notice as per information in public domain. |
Analytical Approach For arriving at its ratings, CRISIL Ratings has taken a consolidated view of Manugraph and its wholly-owned subsidiary, i.e., Manugraph Americas Inc.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
About the Company Incorporated in 1971 and promoted by Mr Sanat Shah, Manugraph manufactures single- and double-width web offset printing machines. The manufacturing facility is in Kolhapur, Maharashtra. The company has been recognized as an R&D house by the Department of Scientific and Industrial Research. Its strong R&D capability has facilitated the development of products such as the Smartline 4X1 machine (double-width) with a speed of 70,000 copies per hour (cph), Dreamline 4X1 machine (double-width) with a speed of 50,000 cph, and Ecoline 2X1 machine (single width) with a speed of 25,000 cph.
In fiscal 2018, the company entered the plastic packing industry by manufacturing flexo-machines, used for printing food packaging. It has partnered with Carraro Srl, Italy, and delivered its first order in March 2018.
Revenue and net loss were Rs 45 crore and Rs 9 crore, respectively, in the first nine months of fiscal 2023, as against Rs 34 crore and Rs 12 crore, respectively, in the corresponding period of the previous fiscal |
Key Financial Indicators
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Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)*
**Includes sublimit of LC of Rs 4 crore ^Cash credit facility is completely fungible with letter of credit *Issuer did not cooperate; based on best-available information |
Annexure - List of Entities Consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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* - Issuer did not cooperate; based on best-available information
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||
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Criteria Details
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